I have not been able to get the 3.0 software, but would like to confirm what I am seeing. I have taken some digital pictures of the boot process, as I noticed that the logo looks different during the first boot after 100% download of 3.0. It then reboots again with a different logo which I believe confirms that the 3.0 software was loaded but then got reverted to 2.1.

Steps that I have taken to get 3.0 (I have at least 8 100% downloads with no success of it installing)

Changed phone line to my 'good' line that my dial up internet is on.
Unplugged all devices using that phone line except the 3060
Factory reset 777-Zone
Changed the phone number to 4 different numbers
Removed the serial cable to the RCA DSS
Installed the IR blaster
Changed the video inputs on the setup menu for different settings
Changed the 75 ohm input to off and removed the cable
Unplugged the 3060 several times for as long as 30 minutes
Unplugged the 3060 after 100% download completed/Finishing up 50% (hey I'll try anything at this point!)

When my 3060 came in a couple weeks ago, I got 3.0 the first night with no problems.
Sounds like it is some kinds of corruption, or a hardware problem. But looks like it is beyond something that can be fixed by the user.

First, you need to get a flat screen. http://www.avsforum.com/ubb/smile.gif
Actually, what you need to do is contact replaytv tech support, as there is obviously a problem with this upgrade. My guess is that they'll ship you a replacement unit (guaranteeing the return of yours with a credit card).